Fitch upgrades Iceland to BBB+, Outlook stableFitch Ratings has upgraded Iceland's Long-term foreign currency Issuer Default Rating to 'BBB+' from 'BBB'. The Long-term local currency IDR has been upgraded to 'A-' from 'BBB+'. The Outlooks are Stable. The issue ratings on Iceland's senior unsecured foreign and local currency bonds have also been upgraded to 'BBB+' and 'A-', respectively. The Country Ceiling has been revised to 'BBB+' from 'BBB' and the Short-Term Foreign-Currency IDR upgraded to 'F2' from 'F3'. Reference Link

16:15 EDT

Fitch affirms Belgium at AA, Outlook negativeFitch Ratings has affirmed Belgium's Long-term foreign and local currency Issuer Default Ratings at 'AA' with a Negative Outlook. The issue ratings on Belgium's senior unsecured foreign- and local-currency bonds are also affirmed at 'AA'. The Country Ceiling is affirmed at 'AAA' and the Short-term foreign-currency IDR at 'F1+'. Reference Link

Treasury Action: shorter dated Treasuries are outperforming today Treasury Action: shorter dated Treasuries are outperforming today as a number of factors suggest risk the FOMC will delay September liftoff. However, analysts suspect the long end will reassert itself next week. The plunge in new home sales data, disappointing PMIs from Europe and China, the drop in commodity prices, and the dovish Fed staff outlook are creating some second thoughts on market policy outlooks. Those, and unwinding of curve flatteners are giving the front end a boost. The 2s-10s spread has edged out to 158 bps from 157 bps yesterday, to end a string of 8 consecutive days of flattening. However, with the advent of the Fed and risk the policy statement isn't as bond friendly as seen today, along with $105 B in short and intermediate supply, should see the back end of the curve outperform again. Additionally, it's month-end and the duration index is expected to extend out 0.10 years, which should further support. The drop in commodity prices and the strength in the dollar, not to mention the Fed's staff view that inflation won't reach the 2% target until 2020, will also add to benign price outlooks and underpin bonds. Plus, it's a seasonally bullish time of year for the long end.

13:40 EDT

U.S. Durable Goods Preview U.S. Durable Goods Preview: June durable goods data is out on Monday and analysts expect to see orders up 2.0% (median 3.1%) following a 2.2% decline in May and a 1.7% drop in April. Both sales and inventories are expected to be unchanged on the month which should leave the I/S ratio steady at 1.67 since March. There was a major surge in Boeing orders in June to 181 from just 11 in May which could provide some lift via the transport component.